System and Method for Issuing Negotiable Instruments by Licensed Money Transmitter from Direct Deposits

ABSTRACT

Embodiments relate to a cash card and associated systems and processes. An account structure is provided that allows a non-bank entity to indirectly provide direct deposit capabilities for funds representing pre-payments for negotiable instruments. When a direct deposit of funds into a first account associated with the individual and maintained by a first entity is detected, the total amount of the funds is transferred into a second account associated with the individual and maintained by a second entity. The first entity is a bank or other financial institution subject to federal banking regulations, while the second entity is not subject to federal banking regulations. The individual may withdraw the funds from the second account by requesting the issuance of negotiable instruments. Negotiable instruments may be issued in any dollar amount not exceeding the balance of the second account. A properly enrolled customer may make subsequent deposits into the second account.

CROSS REFERENCE TO RELATED APPLICATIONS

This application claims priority to U.S. Provisional Application No.60/130,057, filed on Apr. 19, 1999.

FIELD OF THE INVENTION

The present invention relates generally to prepaid negotiableinstruments. More specifically, the present invention relates topre-paying funds into a transaction account and subsequently drawingupon those funds through the issuance of negotiable instruments.

BACKGROUND

Banks traditionally offer certain benefits to their customers, such assafe-storage of and access to funds, direct deposit capabilities,automated teller machine (ATM) access and convenience of service points,etc. Many members of the cash based society understand and seek suchbank-like benefits at reasonable and straightforward prices, but areoften reluctant to enter into a relationship with banks. One reason forthe cash based society's avoidance of banks is that they tend to feelthat they are not respected by banks. Also, members of the cash basedsociety typically reject hidden fees, limited services and locations,approval processes, minimums, etc. Thus, the prevailing product andservice approaches of banks tend to intimidate members of the cash basedsociety, or at least impede the successful adaptation of bank servicesto their needs and lifestyles.

Some banks and financial institutions offer “low cost” or “basic”accounts. Such financial institutions usually restrict services, offer“lower” fees, and may waive minimum balance requirements. However, suchlow cost accounts remain unappealing to many members of the cash basedsociety because they tend to be offered through bank branches withlimited hours and locations and ATMs which may not be local to theconsumer. Furthermore, there is still a credit check and an approvalprocess associated with “low cost” accounts, which the cash basedconsumer might fail because of credit history or residence problems. Inaddition, the cash based consumer may be worried about garnishments orinconvenient, disrespectful service.

Some financial institutions offer debit card payroll solutions. Forexample, a branded check printing service may provide direct depositcapabilities for federal benefit checks in exchange for a transactionfee. However, federal benefit check distribution services do not allowmultiple withdrawals in varied amounts. Transaction fees for these andother debit card payroll solutions tend to be expensive. There iscurrently no other banking service offered to the cash based societythat provides direct deposit capability.

Accordingly, there remains a need for a financial service that offerssafe-storage of and access to funds, direct deposit capabilities,automated teller machine (ATM) access, convenient service points, etc,without requiring a traditional bank-customer relationship.

SUMMARY OF THE INVENTION

The present invention meets the above-described needs by providing asystem and method whereby a non-bank entity, such as a Licensed MoneyTransmitter, may issue prepaid negotiable instruments to an individual.In one aspect of the invention an account structure is provided thatallows a non-bank entity to indirectly provide direct depositcapabilities for funds representing pre-payments for negotiableinstruments. When a direct deposit of funds into a first accountassociated with the individual and maintained by a first entity isdetected, the total amount of the funds is transferred, or swept, into asecond account associated with the individual and maintained by a secondentity. The first entity is a bank or other financial institutionsubject to federal banking regulations, while the second entity is notsubject to federal banking regulations. Detecting a direct deposit offunds into the first account comprises detecting a credit in the totalamount of the funds posted in the first account. Automaticallytransferring the total amount of the funds into the second accountcomprises posting a debit in the total amount of the funds in the firstaccount and posting a credit in the total amount of the funds in thesecond account.

An account number and a PIN are associated with the second account andare provided to the individual. When a request by the individual for theissuance of a negotiable instrument is detected, the PIN and the accountnumber are verified to determine that the account number identifies thesecond account and that the PIN identifies the individual as beingauthorized to access the second account. Then, a determination is madeas to whether the value of the requested negotiable instrument is inexcess of the balance of the second account. If the value of therequested negotiable instrument plus any fees charged to the individualis not in excess of the balance of the second account, the issuance ofthe requested negotiable instrument to the individual is authorized. Inresponse to the issuance of the requested negotiable instrument, thebalance of the second account is debited by the value of the requestednegotiable instrument plus any fees. When the individual requests theissuance of multiple negotiable instruments, a determination is made asto whether the aggregate value of the requested multiple negotiableinstruments plus any fees is not in excess of the balance of the secondaccount. Upon issuance of the requested multiple negotiable instrumentsto the individual, the second account is debited by the aggregate valueof the requested multiple negotiable instruments plus any fees.

A properly enrolled customer may make subsequent deposits into thesecond account. Upon requesting a balance increase for the secondaccount, the individual tenders a payment in the requested amount. Inresponse to the balance increase request the second account is creditedin the requested amount.

Another aspect of the invention provides a system and method forconducting anonymous transactions with an individual regarding prepaidnegotiable instruments. An anonymous account is provided that isidentified by an account number. The individual is then provided withthe account number and a PIN allowing access to the anonymous account.Upon verification of the PIN and the account number, the individual isauthorized to make an initial deposit of funds into the anonymousaccount. The initial deposit of funds represents a pre-payment fornegotiable instruments. The individual is thus authorized to request theissuance of negotiable instruments in an amount not exceeding theinitial deposit of funds. When the issuance of negotiable instrumentshas depleted the initial deposit of funds, the anonymous account isclosed and no other transactions are authorized.

The anonymous account may be converted into a non-anonymous account ifthe individual provides personal identifying information, such as name,address, social security number, etc. Once such personal identifyinginformation is provided, a non-anonymous account associated with theindividual may be established. The non-anonymous account may have a newaccount number and PIN associated therewith. The new account number andPIN may be used by the individual to make subsequent deposits of fundsinto the non-anonymous account. While an anonymous account is notauthorized to accept direct deposits of funds, the non-anonymous accountmay be linked to a traditional bank account, via a communications link,so as to indirectly offer direct deposit capabilities.

These and other aspects of the present invention will become apparentupon review of the following description with particular reference tothe attached drawings.

BRIEF DESCRIPTION OF THE DRAWINGS

FIG. 1 is a functional block diagram illustrating the movement of fundsthrough an exemplary account structure in an illustrative embodiment ofthe present invention.

FIG. 2 is a functional block diagram illustrating the process flow of anillustrative embodiment of the present invention.

FIG. 3 is a functional block diagram illustrating an exemplary financialnetwork environment for an illustrative embodiment of the presentinvention.

FIG. 4 is a functional block diagram of a computer system illustratingan operating environment for illustrative embodiments of the programmodules of the present invention.

FIG. 5 is an illustration of an exemplary Cash Card^(SM) of the presentinvention.

FIG. 6 is an illustration of an exemplary anonymous Cash Card^(SM) ofthe present invention.

FIG. 7 is a flow diagram illustrating an exemplary method for processingtransactions associated with an anonymous Cash Card^(SM).

DETAILED DESCRIPTION

Members of the cash based society may avoid the above-describeddrawbacks associated with traditional banking relationships byconducting business with Licensed Money Transmitters. An example of aLicensed Money Transmitter is Western Union. A Licensed MoneyTransmitter is legally authorized to transmit funds, either by wire,facsimile, electronic transfer, courier or otherwise, within the UnitedStates or to or from locations outside the United States. A LicensedMoney Transmitter may also be authorized to sell or issue checks,drafts, warrants, money orders, traveler's checks or other negotiableinstruments. In some instances, a Licensed Money Transmitter may even beauthorized to sell and/or exchange currency. Unlike traditional banktransactions, however, transactions handled by a Licensed MoneyTransmitter are not insured by the FDIC.

The present invention allows a Licensed Money Transmitter to accept fromits consumers advance payments for negotiable instruments. By way of anonline, non-interest bearing, non-FDIC insured transaction account, theLicensed Money Transmitter may provide payment instrument and moneytransmission services to its cash based consumers without the need forthe qualifying/approval barriers, high costs, and intricate fee andreporting obstacles associated with a traditional banking relationship.The transaction account maintained by the Licensed Money Transmitter maybe configured to accept deposits from a point of sale (POS) terminal ata retail establishment. In an exemplary embodiment, the transactionaccount may also be configured to indirectly accept direct deposits offunds, such as federal benefits checks and employee payroll checks.

The consumer may access his or her pre-paid negotiable instrumentselectronically via a POS terminal or an automated teller machine (ATM).Upon demand, a negotiable instrument, such as a money order, may beprinted and cashed for the consumer at a POS terminal by an agent of theLicensed Money Transmitter. Negotiable instruments may be printed inodd/specific amounts so that the customer may receive cash inodd/specific denominations for the purpose of paying bills, etc.Alternately, an ATM may dispense the requested cash to the consumer.

Since the transaction account maintained by the Licensed MoneyTransmitter is not built around the classic FDIC insured demand depositaccount (DDA) structure, overall system costs, and ultimately consumercosts, are reduced. For example, because the funds deposited into thetransaction account are considered as advance payments for negotiableinstruments, no credit approvals are required. Also, because withdrawalsfrom the transaction account are processed on-line and in real time,mechanisms may be provided for ensuring that there are no accountoverdrafts. Without overdrafts, there is no need to worry about feesattributable to an overdrawn account status.

By establishing a non-banking service that offers POS and ATM access tocash, the present invention allows cash based consumers to avoidvisitations to bank branches that may not be conveniently located.Instead, the cash based consumer may hear about the services of thepresent invention and receive enrollment materials at the same locationsat which they conduct other financial or retail transactions, or throughdirect advertising. Consumers may transfer funds directly from theservice desk (via a POS terminal) of a preferred retailer at a time ofday that is convenient for their lifestyles. Consumers may also beprovided with “VRU” or “Voice 24×7” services so as not to be madedependent only on ATMs and agents operating POS terminals.

As mentioned above, an exemplary transaction account may also beconfigured to indirectly accept direct deposit transactions. Thetransaction account is not configured to directly accept direct deposittransactions due to the desire of the cash based consumer to avoid atraditional banking relationship. Various federal regulations, which arewell known to those skilled in the art, require that certain directdeposit transactions involve FDIC insured bank accounts, and the like.For example, direct deposit of federal benefits checks may only be madeinto traditional FDIC insured bank accounts.

Similarly, banking industry requirements require that other types ofdirect deposit transactions involve a traditional bank account. By wayof illustration, direct deposit of payroll checks are made through anautomated clearinghouse (ACH) system, which uses routing and transit(R&T) numbers and other data to effect the transfer of funds betweenaccounts. R&T numbers are assigned exclusively to FDIC insured banks.Therefore, in order to meet the cash based consumer's demand fornon-banking services, the Licensed Money Transmitter may choose not todirectly offer direct deposit capabilities that are subject to federalbanking regulations and banking industry requirements.

The following description will hereinafter refer to the drawing, inwhich like numerals indicate like elements throughout the severalfigures. An exemplary flow of funds through an illustrative accountsystem of the present invention is described with reference to thefunctional block diagram of FIG. 1. As shown, a transaction account 102is established and maintained by a Licensed Money Transmitter or anagent thereof. The transaction account 102 may be thought of as ageneral account held in the name of the Licensed Money Transmitter. Thegeneral account may be divided into sub-accounts that are associatedwith individual consumers. Alternately, separate transaction 102accounts may be established in the names of each individual consumer.

Due to various federal regulations and industry requirements, thetransaction account 102 is not FDIC insured and is not authorized toaccept funds that are transferred through the Automatic Clearinghouse(ACH) system of the federal reserve. The ACH is an electronic fundstransfer system used by retail and commercial organizations. The ACHacts as a normal clearing house, receiving a transaction over thenetwork and then splitting and routing the debit and credit portions ofthe transaction to the payer's and the payee's banks. Without ACHaccess, the transaction account 102 is not authorized to accept directdeposits of federal benefits checks, payroll checks from employers, orthe like.

Accordingly, an exemplary embodiment of the present inventioncontemplates that a Licensed Money Transmitter will establish acommunication channel with a traditional FDIC insured financialinstitution, such as a bank, in order to service direct depositcustomers. The bank will maintain an FDIC insured bank account 104,which may either be held in the name of the Licensed Money Transmitteror in the name of an individual consumer. The bank account 104 iscapable of accepting federal benefit direct deposits 106 and payrolldirect deposits 108, as well as any other type of federally regulated orbanking industry standardized transfer of funds. The communicationchannel between the Licensed Money Transmitter and the bank may allowthe Licensed Money Transmitter to monitor the bank account 104 forincoming direct deposit transactions.

In an exemplary embodiment of the present invention, incoming directdeposit transactions are “swept” from the bank account 104 into thetransaction account 102. In other words, funds that are deposited in thebank account 104 are instantly transferred into the transaction account102. The instant transfer of funds avoids capitalization of the bank,i.e., no interest on the funds is accumulated. Accordingly, thecommunication channel between the Licensed Money Transmitter and thebank allows customers of the Licensed Money Transmitter to takeadvantage of direct deposit mechanisms, without themselves having tobecome customers of a bank. In addition, non-direct deposit funds may bedeposited into the transaction account 102 via a POS terminal 112 or viaany other bank 114 or financial institution.

Funds that are held in the transaction account 102 may be dispersed tothe customer through a POS terminal 112 operated by an agent of theLicensed Money Transmitter, or through a traditional ATM 116. POSterminals 112 and ATMs 116 allow a consumer to conduct a transactionfrom remote locations. ATMs comprise computer terminals that may beconfigured for remote access, directly or indirectly through switchingnetworks, to a financial account of the consumer, such as a bank account104 or a transaction account 102. Similarly, POS devices 112 comprisecomputer terminals located at a merchant's place of business which allowaccess to a consumer's account information stored in a computer within anetwork of financial institutions, to permit the transfer of funds fromthe consumer's account to the merchant's account.

FIG. 2 illustrates the process flow of an account sweep control module210, which may be implemented through one or more software programmodules. The account sweep control module 210 facilitates communicationsbetween a bank computer system 212 and a Licensed Money Transmitter(LMT) computer system 214. In particular, the account sweep controlmodule 210 facilitates the transfer of funds between a bank account 104accessible by the bank computer system 212 and a transaction account 102accessible by the Licensed Money Transmitter computer system 214. Theaccount sweep control module 210 may be implemented as a component ofthe Licensed Money Transmitter computer system 214, as a component ofthe bank computer system 212, or as a component of a distinct computersystem. The account sweep control module 210 is configured to monitorthe bank account 104 in order to detect the posting of a credit to thebank account 104. As shown in step 201, an exemplary embodiment of theaccount sweep control module 210 receives a notification from the bankcomputer 212 whenever a credit is posted to the bank account 104.Methods of configuring the software and hardware of the bank computersystem 212 to send a notification to the account sweep control module210 upon the posting of a credit to the bank account 104 will beapparent to those skilled in the art.

When a notification of a posted credit is received, the exemplaryaccount sweep control module 210 communicates with the bank computer 212at step 202 in order to post a debit to the bank account 104. In theideal situation, the credit of funds exists in the bank account 104 fora period of time that is on the order of a fraction of a second prior tothe posting of the debit. The credit of funds posted to the bank account104 may be in any “amount X.” The subsequent debit posted by the accountsweep control module 210 to the bank account 104 is in the total “amountX.” Accordingly, the bank account 104 is “zeroed out” and, except for afraction of a second or so, maintains a balance of zero. The debit isposted to the bank account 104 instantly so as to avoid capitalizationof the bank.

At step 203, the exemplary account sweep control module 210 communicateswith the Licensed Money Transmitter computer system 214 in order to posta credit of the total “amount X” into the transaction account 102. Thetransaction account 102 is a holding or escrow account that is used tostore the funds of the consumer. The transaction account 102 does notaccrue interest and does not function as a traditional bank account. Thefunds in the transaction account 102 may represent prepaid negotiableinstruments that may be issued to the consumer via a POS terminal 112operated by an agent of the Licensed Money Transmitter.

When a consumer requests the issuance of a prepaid negotiableinstrument, a request for authorization to issue the negotiableinstrument may be transmitted from a POS terminal 112 to a transactioncontrol module 211. A transaction control module may be implementedthrough one or more software program modules. The transaction controlmodule 211 may be implemented as a component of the Licensed MoneyTransmitter computer system 214, or as a component of a distinctcomputer system. A transaction control module 211 is configured tointeract with the transaction account 102 and POS terminals 112 in orderto manage transactions. By way of illustration, a POS terminal 112 mayrequest authorization to issue a negotiable instrument of amount “Y,” asshown in step 204. The transaction control module 211 accepts therequest for authorization and communicates at step 205 with the LicensedMoney Transmitter computer system 214 in order to verify that thebalance of the transaction account 102 equals or exceeds the requestedamount “Y” plus any transaction fees charged by the Licensed MoneyTransmitter. The transaction control module 211 may also be responsiblefor verifying that the customer requesting the negotiable instrument isin fact authorized to receive the negotiable instrument. For example,the customer may be required to provide a personal identification number(PIN) and an account code, which may be transmitted from the POSterminal 112 to the transaction control module 211. The transactioncontrol module 211 may communicate with a database (not shown) hosted bythe Licensed Money Transmitter computer system 214 in order to determinewhether the PIN and account code provided by the customer are authentic.Additional details regarding security features of the illustrativeembodiments of the present invention will be describe below.

If the balance in the transaction account 102 equals or exceeds therequested amount “Y” plus any transaction fees, the transaction controlmodule 211 transmits to the POS terminal 112 an authorization to issuethe requested negotiable instrument, as shown in step 206. However, ifthe balance in the transaction account 102 is less than the requestedamount “Y” plus any transaction fees, the transaction control module 211will not authorize the issuance of the requested negotiable instrument.As mentioned, the funds held in the transaction account 102 areconsidered to represent prepaid negotiable instruments. Therefore, thetransaction account 102 will not be debited in any amount that exceedsthe prepaid value of the negotiable instruments plus any transactionfees. Transaction fees may be charged at the time of the transaction soas to avoid the situation where the transaction account 102 is depletedand the customer owes a debt to the Licensed Money Transmitter. Ensuringthat the transaction account 102 is never overdrawn avoiding the need tocharge additional service fees associated with an overdraw accountstatus.

After receiving authorization to issue the requested negotiableinstrument, the agent of the Licensed Money Transmitter operating thePOS terminal 112 prints and cashes the negotiable instrument in theamount “Y” plus any transaction fees. The agent may then retain anytransaction fees and provide the remainder of the cash to the consumer.At step 207, the POS terminal 112 notifies the transaction controlmodule 211 that the negotiable instrument has been issued. Then, at step208 the transaction control module 211 communicated with the LicensedMoney Transmitter computer system 214 in order to post a debit in theamount “Y” plus any transaction fees to the transaction account 102.

The exemplary embodiments described with respect to FIG. 1 and FIG. 2include a two account structure (i.e., a bank account 104 and atransaction account 102) and an account sweep control module 210. Itwill be appreciated to those of ordinary skill in the art that the twoaccount structure and the account sweep control module 210 are notnecessary in situations where there is no desire to indirectly providedirect deposit capabilities. Various features and aspects of the presentinvention may be implemented in systems that do not require such directdeposit capabilities. In addition, it should be appreciated that thefunctionality of the account sweep control module 210 and thetransaction control module 211 has been provided by way of example only.Additional functions may be performed by either module withoutlimitation of the scope of the present invention.

FIG. 3 is an overview of an exemplary Licensed Money Transmitter networkenvironment 300 that may host a system in accordance with theillustrative embodiments of the present invention. A POS terminal 112communicates with a Tandem computer system 302 via a network 303. TheTandem computer system 302 may be in communication with, or may comprisea part of, the Licensed Money Transmitter computer system 214. Althoughthe functionality of a “Tandem” brand computer system is a well-known inthe art, as used herein a Tandem computer system 302 may refer to anygeneric network server system. A POS terminal 112 generally includes aprinter 304 and a control terminal 306. The control terminal 306typically comprises a keypad, a display, a modem, a memory, and aprocessor. The control terminal 306 may communicate print commands tothe printer 304 via, for example, an RS-232 link or other suitablecommunications link. The control terminal 306 manages negotiableinstrument transactions and stores data in a memory.

A profile database management system 312 may be provided for managementof the POS terminals 112. In manners well known in the art, softwareupdates and other data may be downloaded from the profile databasemanagement system 312 to a POS terminal 112. Such software updates andother data may be generated and stored in the profile databasemanagement system 312 by a Licensed Money Transmitter support personnelsystem 310. The Licensed Money Transmitter support personnel system 310may include personal computers 310 a operated by support personnel andtelephones 310 b manned by support personnel or linked to VRU systems.The Licensed Money Transmitter support personnel system 310 may becoupled to the profile database management system 312 via a local areanetwork (LAN) or other private communications link. The Licensed MoneyTransmitter support personnel system 310 may also be linked to thenetwork 303, so as to be accessible to customers via telephone systems.

At predetermined times, the control terminal 306 of the POS terminal 112transmits its data to the Tandem computer system 302 via the network303. The Tandem computer system 302 creates a batch file comprising datareceived from many POS terminals 112. The Tandem computer system 302typically forwards batch files to the appropriate component of theLicensed Money Transmitter computer system 214 at predetermined times.For security purposes, the Tandem computer system 302 may transmit abatch file to the Licensed Money Transmitter computer system 214 via aprivate network or other private communications link.

The Licensed Money Transmitter computer system 214 is configured for,among other things, accessing the transaction account 102 maintained bythe Licensed Money Transmitter. The transaction account 102 may bephysically stored in a memory device in communication with the LicensedMoney Transmitter computer system 214. The Licensed Money Transmittercomputer system 214 may also host a database 316 of account codes, PINs,and other customer/account information. Such customer/accountinformation may be used for security purposes and to monitor the natureand frequency of transactions performed by each customer.

The Licensed Money Transmitter computer system 214 may also comprise orbe in communication with the account sweep control module 210. Theaccount sweep control module 210 is in turn in communication with thebank computer system 212. The bank computer system 212 is configuredfor, among other things, accessing the bank account 104, which mayphysically be stored in a memory device in communication with the bankcomputer system 212.

The Tandem computer system 302 may be in communication with thetransaction control module 211. Thus, communications to and from the POSterminal 112 may be routed from and to the transaction control module211 via the Tandem computer system 302. As mentioned, the transactioncontrol module 211 is configured to manage transactions involvingdeposits into and withdraws from the transaction account 102. Althoughshown as being a distinct network component, those skilled in the artshould appreciate that the transaction control module 211 mayalternately be implemented as a component of either the Tandem computersystem 302 or the Licensed Money Transmitter computer system 214.

FIG. 4 and the following discussion are intended to provide a brief andgeneral description of a suitable computing environment for implementingvarious aspects of the present invention embodied in software programmodules, namely the exemplary account sweep control module 210 and theexemplary transaction control module 211. Although the system shown inFIG. 4 is a conventional computer 400, those skilled in the art willrecognize that the invention also may be implemented using other typesof computer system configurations. The computer 400 includes a centralprocessing unit 422, a system memory 420, and an Input/Output (“I/O”)bus 426. A system bus 421 couples the central processing unit 422 to thesystem memory 420. A bus controller 423 controls the flow of data on theI/O bus 426 and between the central processing unit 422 and a variety ofinternal and external I/O devices. The I/O devices connected to the I/Obus 426 may have direct access to the system memory 420 using a DirectMemory Access (“DMA”) controller 424.

The I/O devices are connected to the I/O bus 426 via a set of deviceinterfaces. The device interfaces may include both hardware componentsand software components. For instance, a hard disk drive 430 and afloppy disk drive 432 for reading or writing removable media 450 may beconnected to the I/O bus 426 through a disk drive controller 440. Anoptical disk drive 434 for reading or writing optical media 452 may beconnected to the I/O bus 426 using a Small Computer System Interface(“SCSI”) 441. The drives and their associated computer-readable mediaprovide nonvolatile storage for the computer 400. In addition to thecomputer-readable media described above, other types ofcomputer-readable media may also be used, such as ZIP drives or thelike.

A display device 453, such as a monitor, is connected to the I/O bus 426via another interface, such as a video adapter 442. A parallel interface443 connects synchronous peripheral devices, such as a laser printer456, to the I/O bus 426. A serial interface 444 connects communicationdevices to the I/O bus 426. A user may enter commands and informationinto the computer 400 via the serial interface 444 using an inputdevice, such as a keyboard 438, a mouse 436 or a modem 457. Otherperipheral devices (not shown) may also be connected to the computer400, such as audio input/output devices or image capture devices.

A number of software program modules may be stored on the drives and inthe system memory 420. The system memory 420 can include both RandomAccess Memory (“RAM”) and Read Only Memory (“ROM”). The software programmodules control the manner in which the computer 400 functions andinteracts with the user, with I/O devices or with other computers.Software program modules include routines, operating systems 465,application programs, data structures, and other software or firmwarecomponents. In an exemplary embodiment, the present invention mayinclude one or more account sweep control modules 210 and one or moretransaction control modules 211. The one or more account sweep controlmodules 210 may comprise computer executable instructions forfacilitating communications between a bank computer system 212 and aLicensed Money Transmitter computer system 214. The one or more accountsweep control modules 210 may further comprise computer executableinstructions for monitoring credits posted to a bank account 104,posting debits to the hank account 104 and posting credits to thetransaction account 102, as previously described. The one or moretransaction control modules 211 may comprise computer executableinstructions for facilitating communications between a POS terminal 112or an ATM 116 and a Licensed Money Transmitter computer system 214, aspreviously described.

Many or most of the software-controlled operations performed by theexemplary software program modules of the present invention areconventional and well-known in the industry. For example, it isconventional and well known to communicate standard ATM and POS messagesbetween a computer system and an ATM network using conventional off-theshelf ATM and POS software. In an exemplary embodiment, the computer 400also includes such conventional software to generate and communicateappropriate messages. Conventional software packages also exist whichperform a variety of exceeding complex but entirely conventionalfunctions (e.g., maintaining audit trails to ensure transactionreliability, maintaining user account and vender files, provide clearinginformation, etc.). Such conventional software program modules may alsobe executed by the computer 400 in an exemplary embodiment. Conventionaldatabase management systems may also be executed by the computer 400 formaintaining customer/account information.

The computer 400 may operate in a networked environment using logicalconnections to one or more remote computers, such as remote computer460. The remote computer 460 may be a server, a router, a peer device orother common network node, and typically includes many or all of theelements described in connection with the computer 400. In a networkedenvironment, program modules and data may be stored on the remotecomputer 460. The logical connections depicted in FIG. 4 include a localarea network (“LAN”) 454 and a wide area network (“WAN”) 455. In a LANenvironment, a network interface 445, such as an Ethernet adapter card,can be used to connect the computer 400 to the remote computer 460. In aWAN environment, the computer 400 may use a telecommunications device,such as a modem 457, to establish a connection. It will be appreciatedthat the network connections shown are exemplary and other means ofestablishing a communications link between the computers may be used.

Aspects of the present invention may be implemented by way of anyaccount identifying mechanism, such as a plastic card issued to aparticular consumer. As shown in FIG. 5, in an exemplary embodiment aconsumer is provided with a Cash Card^(SM) 500 that includes identifyinginformation on the front and an encoded magnetic strip on the reverse.Identifying information may include an account identification code 502and a customer name and number 504. The identifying information may beused to associate a transaction account 102 or a sub-account thereofwith the particular consumer.

From the consumer's point of view, funds may be loaded onto andoff-loaded from the Cash Card 500 at any time. Thus, the Cash Card 500eliminates the cash based consumer's need to carry large amounts of cashon his or her person. As previously described, the consumer mayauthorize the deposit of funds into a transaction account 102 associatedwith the Cash Card 500 in various ways, such as through direct deposittransactions, POS transactions, ATM transactions, etc. Subsequently,upon presentation of a Cash Card 500 or other account identifier and apersonal identification number (PIN), the consumer may access the fundsthat are stored in his or her name in the transaction account 102.

To request a withdrawal of funds from the transaction account 102, aconsumer may present the Cash Card 500 to an agent of the Licensed MoneyTransmitter operating a POS terminal 112. Alternately, the Cash Card maybe presented at an ATM 116. The account identification code 502 may beread by the agent or an automated reader from the front of the Cash Card500 or from the encoded magnetic strip on the reverse of the Cash Card500. The account identification code 502, a PIN obtained from theconsumer, and other data, such as a requested amount of funds, aretransmitted to the transaction control module 211 as a request forissuance of a negotiable instrument. As described previously, thetransaction control module 211 interacts with the Licensed MoneyTransmitter computer system 214 in order to effect an electronictransfer of funds from the transaction account 102 to the POS terminal112 or the ATM 116 that generated the request for funds. In a similarfashion, the Cash Card 500 may be presented to an agent at a POSterminal 112, an ATM 116, or a teller at a bank 114 in order to conducta transaction for the deposit of funds into the transaction account 102.

Accordingly, in one embodiment of the present invention, a Cash Card 500is issued in the name of a particular consumer upon that consumer'senrollment as a customer of the Licensed Money Transmitter. Enrollmentmay entail the provision of certain customer information, such as name,address, phone number, social security number, etc. For liability and/orsecurity purposes, the Licensed Money Transmitter may require some orall of the above-listed customer information prior to providing aconsumer with full privileges for depositing and withdrawing funds intoand out of the transaction account 102.

As shown in FIG. 6, an alternate embodiment of the present inventioninvolves the issuance of an anonymous Cash Card 600. An anonymous CashCard 600 includes an account identification code 602 and an anonymouscustomer indicator 604. An anonymous Cash Card 600 may be associatedwith an anonymous transaction account or an anonymous sub-account withinthe transaction account 102. The anonymous account is identified only byan account code and a PIN that is provided to the consumer of theanonymous Cash Card 600. The anonymous Cash Card 600 may be a one-loadCash Card, meaning that funds may be deposited into the associatedanonymous transaction account only one time. Once the initially loadedfunds are depleted from the anonymous transaction account, the anonymousCash Card 600 is no longer valid (unless it is converted to a “regular”Cash Card 500, as will be described below).

An anonymous Cash Card 600 may be sold or otherwise provided to aconsumer, who may then request that a particular amount of funds beloaded onto the anonymous Cash Card 600. The consumer of the anonymousCash Card 600 is provided with a PIN, which may be used to authorizeloading of the anonymous Cash Card 600. Funds to be loaded onto theanonymous Cash Card 600 are collected by, for example, an agent of theLicensed Money Transmitter. A credit in the amount of the collectedfunds is then posted to the anonymous transaction account in the mannerpreviously described. In accordance with one embodiment of the presentinvention, an anonymous Cash Card 600 may be loaded by the consumer onlyat a POS terminal 112. Given the anonymous nature of anonymous Cash Card600 transactions, no direct deposit capabilities are provided.

The funds to be loaded onto the anonymous Cash Card 600 may be limitedto specific or incremental dollar amounts. For example, it may be apolicy of the Licensed Money Transmitter that no anonymous Cash Card 600may be loaded with more than a predetermined value. Alternately, ananonymous Cash Card 600 having a first load limit may be sold toconsumers for a first price, while an anonymous Cash Card 600 having asecond load limit may be sold to consumers for a second price, etc. Inanother embodiment, an anonymous Cash Card 600 may be pre-loaded with aparticular amount of funds. In this manner, the Licensed MoneyTransmitter may store funds of a predetermined amount in the anonymoustransaction account associated with the anonymous Cash Card 600. Then,the pre-loaded anonymous Cash Card 600 may be sold to a consumer for aprice equal to the predetermined amount plus any additional servicefees.

As mentioned, an anonymous Cash Card 600 may expire upon depletion ofthe initially loaded funds. An expired anonymous Cash Card 600 may nolonger be used by the consumer to deposit funds into or withdraw fundsfrom a transaction account 102. However, the present inventioncontemplates that an anonymous Cash Card 600 may be converted into a“regular” Cash Card 500 that carries full reload and access privileges,including direct deposit capabilities. Conversion from an anonymous CashCard 600 to a regular Cash Card 500 requires that the consumer enroll asa customer of the Licensed Money Transmitter. As mentioned above,enrollment entails providing certain customer and account specificinformation. Enrollment may be performed over the telephone, via themail, or through any other suitable communications medium. When theconsumer has successfully enrolled as a customer, the Licensed MoneyTransmitter may provide the customer with a new Cash Card 500 and PIN.As is well known in the art, the customer may choose the PIN to beassociated with his or her transaction account 102. Alternately,although less desirably, the newly-enrolled customer may continue to usethe original anonymous Cash Card 600 and the associated PIN as if itwere a regular Cash Card 500.

FIG. 7 is a flow chart illustrating an exemplary method for processingtransactions associated with an anonymous Cash Card 600. From startingblock 701, the method advances to step 702 where an anonymoussub-account is established within the transaction account 102. Theanonymous sub-account is identified only by an account code and is notassociated with any consumer identifying information. At step 704, theanonymous Cash Card 600 is sold to a consumer. Along with the anonymousCash Card, the consumer is also provided a PIN that authorizes access tothe anonymous sub-account.

The consumer may then request an initial load of the anonymous Cash Card600 by presenting the anonymous Cash Card 600, PIN, and funds to anagent of the Licensed Money Transmitter. At step 706, a credit in theamount of the consumer's initial funds deposit is posted to theanonymous sub-account associated with the anonymous Cash Card 600. Oncefunds are loaded onto the anonymous Cash Card 600, the method proceedsto step 708, where withdrawals may be made until the initial funds havebeen depleted. At step 710 a determination is made as to whether theconsumer has enrolled as a customer of the Licensed Money Transmitter.If the consumer has not enrolled, the method proceeds to step 712 wherethe anonymous sub-account is closed and the anonymous Cash Card 600 isconsidered to be expired.

However, if the consumer has enrolled as a customer of the LicensedMoney transmitter, the method proceeds to step 714, where the anonymoussub-account is converted into a non-anonymous sub-account associatedwith customer identifying information. Then at step 716, thenon-anonymous sub-account is authorized to receive additional depositsfrom the customer. At step 718, the customer may be provided with a newnon-anonymous Cash Card 500 that is issued in the customer's name andhas customer/account information encoded on a magnetic strip or otherdata storage mechanism. The method ends at step 719.

From a reading of the description above pertaining to the disclosedembodiments of the present invention, modifications and variationsthereto may become apparent to those skilled in the art. Otheralternatives and variations may also become apparent to those ofordinary skill in the art upon a close examination of this specificationin view of the drawings. It should be appreciated that many features andaspects of the present invention were described above by way of exampleonly and are therefore not intended to be interpreted as required oressential elements of the invention. Any elements of the invention thatare required or essential would have been explicitly indicated to be so,for example by describing that the element “must” be included.Therefore, the scope of the present invention is to be limited only bythe following appended claims.

1. A computer-implemented method comprising: receiving via at least oneprocessor a request for funds that are available to a user through alicensed money transmitter; receiving via at least one processorinformation associated with the user's identity; receiving via at leastone processor information not associated with the user's identity; afterauthenticating the information associated with the user's identity andthe information not associated with the user's identity, transmittingvia at least one processor an authorization to pay some or all of thefunds to the user; and associating some or all of the funds with a cardor negotiable instrument, which is then issued to and utilized by theuser to subsequently access some or all of the funds.
 2. A systemcomprising: at least one memory operable to store computer-executableinstructions; and one or more processors operable to executecomputer-executable instructions, wherein the computer-executableinstructions are operable to: receive a request for funds that areavailable to a user through a licensed money transmitter; receiveinformation associated with the user's identity; receive via at leastone processor information not associated with the user's identity; afterauthenticating the information associated with the user's identity andthe information not associated with the user's identity, transmit anauthorization to pay some or all of the funds to the user; and associatesome or all of the funds with a card or negotiable instrument, which isthen issued to and utilized by the user to subsequently access some orall of the funds.
 3. The system of claim 2, wherein thecomputer-executable instructions operable to receive a request for fundsthat are available to a user through a licensed money transmittercomprise computer-executable instructions operable to receive therequest via an automated teller machine (ATM), an agent point of sale(POS) terminal, or a card reader terminal.
 4. The system of claim 2,wherein the computer-executable instructions operable to receive arequest for funds that are available to a user through a licensed moneytransmitter comprise computer-executable instructions operable toreceive the request at a POS terminal operated by an agent associatedwith the licensed money transmitter, or to receive the request from anautomated teller machine (ATM).
 5. The system of claim 2, wherein thefunds that are available to a user through a licensed money transmitterare provided to a transaction account by a deposit from a source otherthan direct deposit at the regulated financial institution.
 6. Thesystem of claim 5, wherein the transaction account is replenished by acash deposit via an automated teller machine (ATM), a POS terminalassociated with the licensed money transmitter computer system, or anon-direct deposit at a financial institution.
 7. The system of claim 5,wherein the user is provided the card for use in transactions associatedwith the transaction account.
 8. The system of claim 2, wherein the cardincludes user identifying information.
 9. The system of claim 2, whereinthe card includes human readable identifying information on one side anda magnetic stripe on another side, the magnetic stripe being readable bya POS terminal operated by an agent associated with the licensed moneytransmitter computer system for obtaining information from the magneticstripe.
 10. The system of claim 9, wherein the identifying informationof the card includes an account identifier and a user name.
 11. Thesystem of claim 9, wherein the card is an anonymous cash card and theidentifying information of the card only includes an account identifier.12. The system of claim 5, wherein a personal identifying number (PIN)is associated with the card, and the system only conducts transactionswith respect to the transaction account upon presentation of the cardand a corresponding PIN.
 13. The system of claim 2, wherein presentationof the card by the user to a POS terminal of the licensed moneytransmitter is treated by the licensed money transmitter as the requestfor issuance of another negotiable instrument.
 14. The system of claim2, wherein the card is a negotiable instrument.
 15. The system of claim2, wherein presentation of the card by the user to a POS terminal of thelicensed money transmitter is treated by the licensed money transmitteras the request for disbursement of cash by an agent associated with thelicensed money transmitter, or wherein presentation of the card by theuser to an ATM is treated by the licensed money transmitter as therequest for disbursement of cash by the ATM, or wherein presentation ofthe card by the user to a POS terminal of the licensed money transmitteror to a bank or to an ATM together with the presentation of cash istreated by the licensed money transmitter as the request for deposit ofthe cash to the transaction account associated with the individual. 16.The system of claim 5, wherein funds deposited to the transactionaccount are only performed by enrolled customers of the licensed moneytransmitter.
 17. The system of claim 5, wherein the card is an anonymouscash card only bearing an account number and a personal identifyingnumber (PIN), and wherein anonymous transactions involving thetransaction account may be effected upon presentation by the user of thecash card to an agent associated with the licensed money transmitter andthe PIN.
 18. The system of claim 17, wherein the anonymous cash card isa one-load cash card and is invalidated upon depletion of predeterminedfunds in the transaction account.
 19. The system of claim 17, whereinthe anonymous cash card is converted into a regular cash card andenabled for use in connection with subsequent deposits of funds to thetransaction account and further transactions upon enrollment of the useras a customer of the licensed money transmitter.
 20. A computer readablemedium comprising instructions that when executed by at least oneprocessor, cause the at least one processor to: receive a request forfunds that are available to a user through a licensed money transmitter;receive information associated with the user's identity; receiving viaat least one processor information not associated with the user'sidentity; after authenticating the information associated with theuser's identity and the information not associated with the user'sidentity, transmit an authorization to pay some or all of the funds tothe user; and associate some or all of the funds with a card ornegotiable instrument, which is then issued to and utilized by the userto subsequently access some or all of the funds.